In previous articles, we examined gold’s performance in the presidential election cycles. The only relatively reliable conclusion we were able to draw from the long-term analysis is that the post-election year is the worst for the price of gold in the whole cycle. Let’s now focus on gold’s short-term dynamics around election time.
We have analyzed the reasons behind the Brexit vote. Let’s turn to the consequences of the Britain’s withdrawal from the EU, which are probably far more important from the investors’ perspective. As we stated in the previous edition of the Market Overview, the exact impact of the potential Brexit depends on the new economic relationship between the UK and the EU. What are the UK’s options outside the European Union?